Veteran homeowners experiencing financial hardship because of the coronavirus (COVID-19) have mortgage relief options available. Call 833-593-5026 for more information on how to apply for mortgage assistance.
There’s a lot in the news right now about potential actions that might impact mortgage payments, including forbearance. Forbearance typically means delaying mortgage payments for a certain period of time. When the forbearance period ends, all of those delayed mortgage payments are due in one lump sum.
For example, if you delay mortgage payments for three months through mortgage forbearance, on the fourth month you would owe those three past-due payments plus your regular payment for that fourth month.
No late fees or credit delinquencies occur while your mortgage payments are in forbearance, which helps Veteran homeowners from taking a hit to their credit scores.
Homeowners unable to make up all of their past-due payments when forbearance ends will likely need to get on a repayment plan or apply for a loan modification. There are benefits and drawbacks with each of those options.
Repayment plans and loan modifications can result in changes to your mortgage payments. For example, loan modifications are basically new loans with your past-due payments rolled in. Because it’s a new loan, your interest rate might also change based on current market rates at the time of the modification.
For more information on payment assistance options and how to apply, call 833-593-5026.